Stocks snap losing streak as Trump sworn in

Stocks snapped their losing streak Friday as Donald Trump took the oath of office for President of the United States.

Author:
WUSA Staff

Published:01/20/17

Stocks snapped their losing streak Friday as Donald Trump took the oath of office for President of the United States.

The Dow Jones industrial average Friday closed up 95 points, or 0.5%, to 19,827 preventing what would have been the sixth-straight down day in a row. The gains pushed the Dow back into the plus column for the year.

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The Trump rally had been losing its gusto ahead of the inauguration as investors worried actual policy changes when the administration begins might be less stimulative than hoped. All three major market measures, the Dow, the Standard & Poor's 500 index and the Nasdaq Composite, are down 0.3%, 0.2%, and 0.4%, for the week, respectively.

That's why the strength Friday came as a relief. The Standard & Poor’s 500 index was up 0.3% to 2271, just shy of its record closing high of 2276.98 notched Jan. 6. The Nasdaq composite index was up 0.3% to 5,555 as it moved back closer to its record close of 5574.12.

Despite Friday's gains, it was overall a negative week for stocks as investors fretted over what Trump might say in his inauguration speech regarding trade and government spending. Investors have been trying to price in the positives of lower tax rates and fiscal stimulation in the form of government infrastructure projects, but also the negatives of trade restrictions and tariffs.

Such uncertainty is a reminder to investors trying to time this kind of change is perilous.

"This bull market has room to run for a few months, I think most investors should stay focused on what comes after, when it may become much more of a two-way street," says Jurrien Timmer, director of global macro at Fidelity Investments. "Unless you have strong convictions about near-term moves, the best bet is to stick with your long-term investment plan."

An expected improvement in quarterly results for corporate earnings as well as optimism over the Trump inauguration is lifting stocks, said Sam Stovall, chief investment strategist at CFRA Research. Analysts now expect corporate profits to rise 4.4% in the fourth quarter, which would be the second-straight quarterly increase, S&P Global Market Intelligence says. History bodes for a bit of a rally, too, given the inauguration. Going back to 1953 when President Dwight D. Eisenhower’s was inaugurated, the S&P 500 rose an average of 1.6% in the first 100 days of a president’s first term in office, Stovall noted.

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The yield on the 10-year Treasury note was stable at 2.47%. The recent rise in Treasury yields has moderated lately. Treasury rates hit their highest point over the past 12 months on Dec. 27 at 2.56%. Yet, Treasury yields have been generally rising since July 2016 as investors expect inflation to increase. The yield on the 10-year has intensified as investors prepare for President Trump's government spending plans, which are expected to increase the country's level of debt.

PHOTOS: Inauguration Day 2017

President Trump, first lady Melania Trump, Vice President Mike Pence, his wife Karen Pence, Ivanka Trump, her husband Jared Kushner and family members dance during the inaugural Liberty Ball at the Washington Convention Center

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WASHINGTON, DC - JANUARY 20: President Donald Trump dances with wife Melania Trump at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC.

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WASHINGTON, DC - JANUARY 20: President Donald Trump waves to guests at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC.

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WASHINGTON, DC - JANUARY 20: President Donald Trump dances with wife Melania Trump at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC.

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WASHINGTON, DC - JANUARY 20: President Donald Trump addresses guests at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC.

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US President Donald Trump and the first lady Melania Trump dance at the Liberty Ball at the Washington DC Convention Center following Donald Trump's inauguration as the 45th President of the United States, in Washington, DC, on January 20, 2017.

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WASHINGTON, DC - JANUARY 20: Vice President Mike Pence and President Donald Trump dance with their wives at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC.

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WASHINGTON, DC - JANUARY 20: President Donald Trump dances with wife Melania Trump at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC.

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WASHINGTON, DC - JANUARY 20: President Donald Trump dances with wife Melania Trump at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC.

President Donald Trump and First Lady Melania Trump attend the Liberty Inaugural Ball on January 20, 2017 in Washington, DC. The Liberty Ball is the first of three inaugural balls that President Donald Trump will be attending.

WASHINGTON, DC - JANUARY 20: Musicians peform at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC. The Liberty Ball is the first of three inaugural balls that President Donald Trump will be attending.

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WASHINGTON, DC - JANUARY 20: The Radio City Rockettes perform at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC. The Liberty Ball is the first of three inaugural balls that President Donald Trump will be attending.

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WASHINGTON, DC - JANUARY 20: The Radio City Rockettes perform at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC. The Liberty Ball is the first of three inaugural balls that President Donald Trump will be attending. (Photo by Rob Carr/Getty Images)

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WASHINGTON, DC - JANUARY 20: Musicians peform at the Liberty Inaugural Ball on January 20, 2017 in Washington, DC. The Liberty Ball is the first of three inaugural balls that President Donald Trump will be attending. (Photo by Rob Carr/Getty Images)

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WASHINGTON, DC - JANUARY 20: A Military Color Guard presents on stage prior prior to the start of the Freedom Inaugural Ball at the Washington Convention Center January 20, 2017 in Washington, D.C.

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WASHINGTON, DC - JANUARY 20: The Presidential Seal is shown on stage prior to the start of the Freedom Inaugural Ball at the Washington Convention Center January 20, 2017 in Washington, D.C.

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WASHINGTON, DC - JANUARY 20: U.S. President Donald Trump waves to supporters as he walks the parade route with first lady Melania Trump and son Barron Trump after being sworn in at the 58th Presidential Inauguration January 20, 2017.

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U.S. Vice President Mike Pence (3L) waves to supporters as he walks the parade route with his wife Karen Pence (3R) and their daughters Audrey Pence (L) and Charlotte Pence (2L) and son Michael Pence (R) during the Inaugural Parade on January 20.

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WASHINGTON, DC - JANUARY 20: President Donald Trump gives a thumbs up as he is driven down 15th Street during the Inaugural Parade on January 20, 2017 in Washington, DC. Donald J. Trump was sworn in today as the 45th president of the United States.

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WASHINGTON, DC - JANUARY 20: U.S. President Donald Trump waves to supporters as he walks the parade route with first lady Melania Trump and son Barron Trump past the main reviewing stand in front of the White House during the Inaugural Parade.

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WASHINGTON, DC - JANUARY 20: A view of atmosphere at the Presidential Inaugural Parade on January 20, 2017 in Washington, DC. (Photo by Mike Coppola/Getty Images)

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WASHINGTON, DC - JANUARY 20: A view of atmosphere at the Presidential Inaugural Parade on January 20, 2017 in Washington, DC. (Photo by Mike Coppola/Getty Images)

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WASHINGTON, DC - JANUARY 20: A view of atmosphere at the Presidential Inaugural Parade on January 20, 2017 in Washington, DC. (Photo by Mike Coppola/Getty Images)

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WASHINGTON, DC - JANUARY 20: U.S. President Donald Trump waves to supporters as he walks the parade route with first lady Melania Trump after being sworn in at the 58th Presidential Inauguration January 20, 2017 in Washington, D.C.

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President Donald Trump greets Hillary Clinton at the Inaugural Luncheon in the US Capitol January 20, 2017 in Washington, DC.

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WASHINGTON, DC - JANUARY 20: A view of atmosphere at the Presidential Inaugural Parade on January 20, 2017 in Washington, DC. (Photo by Mike Coppola/Getty Images)

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WASHINGTON, DC - JANUARY 20: A view of atmosphere at the Presidential Inaugural Parade on January 20, 2017 in Washington, DC. (Photo by Mike Coppola/Getty Images)

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WASHINGTON, DC - JANUARY 20: Spectators fill the National Mall in front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States.

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WASHINGTON, DC - JANUARY 20: (L-R) U.S. President Donald Trump takes the oath of office as his wife Melania Trump holds the bible on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC.

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US President Donald Trump is applauded on January 20, 2017 at the US Capitol in Washington, DC during his swearing-in ceremony.

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Former US president Barack Obama (R) listens to a speech of US President Donald Trump on January 20, 2017 at the US Capitol in Washington, DC during Trump's swearing-in ceremony. /

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Donald Trump's wife Melania is seen next to US Vice President Mike Pence and guests on January 20, 2017 at the US Capitol in Washington, DC during US President Donald Trump's swearing-in ceremony.

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US President Donald Trump salutes his wife and family after the swearing-in ceremony as 45th President of the USA in front of the Capitol in Washington on January 20, 2017.

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President-elect Donald Trump's wife Melania is escorted to her position on the platform at the US Capitol in Washington, DC, on January 20, 2017, for Trump's swearing-in ceremony.

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US Former President Barrack Obama and Michelle are escorted by Donald and Melania Trump as they leave Capitol Hill.

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Former US president Barack Obama (R) listens to a speech of US President Donald Trump on January 20, 2017 at the US Capitol in Washington, DC during Trump's swearing-in ceremony.

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US President Donald Trump is applauded on January 20, 2017 at the US Capitol in Washington, DC during his swearing-in ceremony.

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WASHINGTON, DC - JANUARY 20: President Donald Trump delivers his inaugural address on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC.

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WASHINGTON, DC - JANUARY 20: Spectators fill the National Mall in front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States.

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Former US president Barack Obama (R) listens to a speech of US President Donald Trump on January 20, 2017 at the US Capitol in Washington, DC during Trump's swearing-in ceremony.

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US President Donald Trump is applauded on January 20, 2017 at the US Capitol in Washington, DC during his swearing-in ceremony.

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Donald Trump gives his first speech during the swearing-in ceremony for the 45th President of the USA in front of the Capitol in Washington on January 20, 2017.

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WASHINGTON, DC - JANUARY 20: U.S. President Donald Trump delivers his inaugural address on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC.

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Donald Trump gives his first speech during the swearing-in ceremony for the 45th President of the USA in front of the Capitol in Washington on January 20, 2017.

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President-elect Donald Trump kisses is wife Melania as he arrives on the platform at the US Capitol in Washington, DC, on January 20, 2017, for his swearing-in ceremony.\

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US President-elect Donald Trump is sworn in as President on January 20, 2017 at the US Capitol in Washington, DC.

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President Donald Trump delivers his inaugural address on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States.

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President Donald Trump delivers his inaugural address on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States.

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WASHINGTON, DC - JANUARY 20: U.S. President Donald Trump delivers his inaugural address on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC.

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US President Donald Trump and First Lady Melania Trump(L) wait with former President Barack Obama(2nd-R) and Michelle obama before their departure from the US Capitol after Trump's inauguration ceremonies.

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US President Donald Trump salutes the crowd after the swearing-in ceremony as 45th President of the USA in front of the Capitol in Washington on January 20, 2017.

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WASHINGTON, DC - JANUARY 20: President Donald Trump and former president Barack Obama stand on the steps of the U.S. Capitol with First Lady Melania Trump and Michelle Obamal.

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WASHINGTON, DC - JANUARY 20: U.S. President Donald Trump delivers his inaugural address on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC.

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WASHINGTON, DC - JANUARY 20: U.S. President Donald Trump delivers his inaugural address on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC.

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WASHINGTON, DC - JANUARY 20: U.S. President Donald Trump delivers his inaugural address on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC.